Reams of legislation to be passed / discussed today by Cabinet. Emaar Misr IPO at least 7x oversubscribed. Upper Egypt dev’t conference in spotlight. Morsi death sentence hearing this morning. Saudi opening anticlimactic. EGPC: No backtracking.

WHAT WE’RE TRACKING TODAY

Broadly speaking, today is looking to be a busy a news day as the Mahlab government attends to housekeeping matters during the overlap this year between two traditional busy seasons: The pre-Ramadan rush and the customary end-of-fiscal-year scramble.

Cabinet will have a packed agenda when it meets today. Look for movement on:

• Approval on the two-year delay for the implementation of the capital gains tax;
• Approval of the unified income tax law, which will see the maximum tax rate decline to 22.5%;
• Approval of the executive regulations of the civil service law, key not just for its early retirement provisions, but because it sets government wages for the 2015-16 budget year;
• Discussion of the Suez Canal development law (story here, more below)
• A deep dive into the 2015-16 state budget that could see the final draft approved (story here, more below)

A final verdict is due today in Mohamed Morsi’s trial for his role in the 2011 Wadi Natroun prison break. The Ikhwan will be holding a press conference in Istanbul.

The next session in a court case filed against the lifting of cotton subsidies is set to take place today per the judge’s order at the last session, although we note there has been no media coverage since the original adjournment confirming the session is on.

The Egypt Urban Forum will close out today at the Marriott Hotel Zamalek, with a session on housing policy and strategies slated to begin at 9:00 am CLT. The session may be watched live at the following link.

WHAT WE’RE TRACKING THIS WEEK

Thursday looks set to be the first day of Ramadan. Fajr will be at about 3:08am CLT; iftar at about 6:59pm CLT.

The Central Bank of Egypt has announced banking hours for the holy month: They will run 9:30am until 1:30pm for the public, with bank staff due in from 9am-2pm.

The EGX’s trading session during Ramadan will run 10:00 am to 1:30pm for the ordinary trading session, with the pre-session for block trades running 09:15 to 09:45. For more details, check out the EGX Ramadan market hours.

LAST NIGHT’S TALK SHOWS

Amr Adeeb encouraging viewers to quit smoking shisha was the main theme of his program on Monday night, as the host encouraged viewers to quit rather than increase their consumption of shisha during Ramadan.

Adeeb had a brief interlude where he tried to adjudicate a dispute between several store owners and Ahmed Mortada Mansour, board member of Zamalek Sporting Club, over the phone. A caller who identified himself as the owner of a store on the club’s grounds alleged that Zamalek’s management has cut off electricity to his store. Ahmed Mortada Mansour, whose call was piped in, countered that the power failure was due to an accidental cable cut, and that further, there were ongoing disputes with store owners over rent, as there are apparently few remaining rental contracts for the stores on record.

Adeeb then returned to the issue of shisha smoke by hosting a three-person panel of health experts.

Youssef El Housseiny hosted as his in-studio guest the chairman of Misr Insurance Adel Moussa. Part of their discussion focused on Egypt’s ongoing issue with traffic accidents, with Moussa stating that the incidence of road accidents in Egypt is — or is among — the highest in the world. He went on to state that Misr Insurance has absorbed losses of EGP 400 mn over the past four years due to payouts on traffic accidents.

Lamees El Hadidy opened her program by noting that Monday marked the four-year anniversary of CBC Egypt, and nearly the four-year mark for her program Hona Al Asema as well.

El Hadidy had a few call-ins to her show, including one from Ahmed Abdel Hady, spokesperson for the public Metro Management and Operation, who discussed the opening of the first air-conditioned subway line from Marg to Helwan, as well as the reasons for the recent malfunction at the Dokki stop. El Hadidy also had a call-in from Khaled El Manawi, Chairman of the Egyptian Chamber of Tourism Establishments, who argued against the upcoming rural economic development conference being held in Hurghada, saying that it should be held in Luxor or Aswan instead. El Hadidy agreed and said she would lend her voice [insert sound of editor shuddering here] in support.

El Hadidy’s most noteworthy call-in was from Investment Minister Ashraf Salman, with the focus of most of their discussion on the proposed rural development conference. El Hadidy began by asking that in light of the slow follow-up of project MOUs signed at the EEDC, could the same slow response be witnessed following the rural investment conference? Salman challenged the way she framed the question, asserting that relatively speaking, the follow-up has been very speedy following the EEDC, and that the same should be expected for the new conference, set to take place in September. When El Hadidy asked why the venue could not instead be at Luxor or Aswan, Salman noted that he frequents both cities for conferences and meetings, but that Hurghada’s facilities were more appropriate for the requirements for the upcoming conference.

The call ended with Salman noting that the Cabinet will ratify the decision to delay the capital gains tax as well as the 22.5% unified income tax law on Tuesday. Readers may note that the income tax approval has been promised to be approved since at least March 2015.

On Tuesday, El Hadidy will devote the entire episode to surveying the new series set to debut in Ramadan, and will host in her studio the principal cast of upcoming drama Harat El Yahud [The Jewish District].

** READ ENTERPRISE IN ARABIC **

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SPEED ROUND

The institutional offering of Emaar Misr’s IPO is seven times oversubscribed, an unnamed source told Al Borsa. The subscription deadline for the institutional tranche, which constitutes 85% of the offering and was opened on 4 June, is ending. Parent company Emaar’s position as the leading real estate developer in the Arab world, as well as compelling industry fundamentals in Egypt, made the offering attractive to institutions, said Hazem Kamel, managing director of asset management at Naeem Holding,

EEDC for Upper Egypt: Preparations for an Upper Egypt investment conference are underway, according to Investment Minister Ashraf Salman on Lamees El Hadidy’s program Hona Al Asima, as we note in the talk show review above. Salman stated that a number of distinguished Egyptian investors and representatives from the Gulf States and abroad have been officially invited to attend. The minister also announced that the conference, which will be held in Hurghada, will seek to establish free-zones and logistics centers in Upper Egypt in addition to exploring investment opportunities in the region and removing obstacles for investment, Al Mal reports. The move comes after the minister held meetings with President Abdel Fattah El Sisi discussing the important projects that will be promoted and other preparations being taken, Youm7 reports.

Saudi opens with a “meh,” not a bang: The Tadawul’s opening yesterday to qualified foreign investors with AUM of at least USD 5 bn passed with more of a shrug than a celebration. The headline on Reuters’ regional market wrap-up says it all: “Saudi Arabia slips on lack of foreign inflows; Egypt flat.” Said the financial newswire: “Saudi Arabia’s bourse gave up early gains and turned slightly negative on Monday after modest trading volumes indicated there were no significant fund inflows from abroad on the first day that the market opened to direct foreign investment.” Both Reuters and the WSJ make the point that few foreign institutions have yet been granted licenses to buy stocks, with the Journal noting that the market’s slip underscores “the challenges that the Middle East’s biggest economy faces as it seeks to attract more international investment that will help reduce its dependence on oil. … Local investors were sellers, but the foreigners they were hoping to sell to didn’t turn up. Some institutions that applied for a license from the Saudi market regulator to buy shares have yet to get one, while many others just stayed away onvaluation concerns. A lack of clarity over some of the new rules was also a hindrance.”

Cabinet will discuss the Suez Canal Development Law today, according to Hany Sarieldin, legal counsel for the Suez Canal Development Agency. He added that the law will include investment incentives for new projects, but no new tax breaks. New projects will pay 22.5% income tax under the upcoming unified tax code, he said, while companies with existing tax holidays will see their benefits grandfathered-in, Al Borsaquotes him as saying.

The cabinet will also discuss today the final draft of the state budget for the 2015/2016 fiscal year, said Investment Minister Mounir Fakhry Abdel Nour, who spoke at the signing ceremony of 15 new projects with the Chinese Government. He added that this draft of the budget aims to cut the deficit to 9.5%-9.9%, in line with Finance Minister Hani Dimian’s previously stated guidance. The budget will be announced soon after the approval of the cabinet, Al Borsa reports.

EGPC: No back-tracking on subsidy reform. EGPC is reassuring the public that the President’s decision to delay the roll-out of the smart card system will not derail the process or the five-year subsidies reform agenda. According to statements by unnamed source within the EGPC, liberalizing the prices of petroleum products will only take place after careful study. (Read in Arabic)

“A summer without an electricity crisis … and affordable goods for citizens during Ramadan.”It’s the Egyptian equivalent of Herbert Hoover’s 1928 election promise of “a chicken in every pot and a car in every garage” — and the banner headline in today’s Al-Ahram, which prominently features Ittihadiya’s readout of a meeting yesterday between President Abdel Fattah El Sisi and the ministers of electricity and supply. The readout focuses largely on the stockpiling of staple commodities ahead of the Holy Month and the state’s success in bringing some semblance of order to the wheat market.

Movement on the China file: The Ministry of Trade and Industry has a signed a framework agreement with the Chinese government, whereby the latter has agreed to execute 15 projects in Egypt with a total investment cost of USD 10 bn. The projects, which span the transportation and energy sectors, are products of the strategic partnership agreement that was signed between the Egyptian and Chinese governments during President Sisi’s visit to Beijing earlier this year. Among the most notable projects is a plan to establish a rail line connecting Cairo to the 10th of Ramadan City and Bilbeis, previously announced at the EEDC. (Read in Arabic)

Al-Azhar magazine editor-in-chief resigns after publishing anti-Christian literature: Mohamed Omara, editor-in-chief of Al-Azhar magazine, a monthly publication by the religious institution, resigned on Saturday as “pressure mounted … after the Egyptian Union of Human Rights Organisations filed a complaint against him for ‘disturbing peace and public security.’ … booklets had been distributed with the magazine, calling Christianity a ‘failed religion’ and demanding to fully replace it with Islam in the Middle East.” (Read)

The Interior Ministry has dropped the charges it filed against local reporters in two separate cases, the office of the Prosecutor General said. The Ministry had filed cases against Al Masry Al Youm for publishing a report documenting police violations and against Youm7 for reporting falsely that an Ittihadiya vehicle was attacked at a Sharm El Sheikh checkpoint. (Read more in English in Ahram Online or in Arabic inAl-Borsa)

For those highly speculative or gullible enough to have been holding ZWD: The exchange rate now stands at 175 quadrillion ZWD to USD 5, according to media reports. (A quadrillion is 1 followed by 15 zeros, FYI). The government is removing the legal status of the currency as all notes issued before 2008 are being demonetized. A better option would be to sell them on ebay, where 100 tn notes are selling for USD 34.99 apiece. While you are at it, you can read about how Zimbabwe’s hyperinflation drove it to that point.

Sudanese president Omar Al-Bashir has returned to Khartoum, and the ICC remains largely irrelevant. The United States expressed that it was “disappointed“ that some sort of action had not been taken against Bashir, which is interesting considering that the United States, at least before Obama’s administration, led the charge internationally to undermine the court during its formation to help turn into the largely ornamental institution that it is today.

Finance tweet of the day by a non-finance person: “Grabbing my popcorn now. Goldman Sachs online consumer lending to middle America can’t end well, can it?” — @mdudas, the mobile payments guru and@button founder on Goldman Sachs’ ‘Plans to Offer Consumer Loans Online, Adopting Start-Ups’ Tactics‘ in NY Times’ Dealbook. See also coverage in the WSJ.

SPOTLIGHT ON: Oil Minister Sherif Ismail

Al-Ahram featured on its home page yesterday a lengthy interview with Petroleum and Natural Resources Minister Sherif Ismail. The interview was a lead story for the full day. That, combined with its length and prominence on the homepage, suggest the government is looking to win PR bennies with the public for its effort to keep the lights (and A/Cs) on throughout Ramadan. The interview transcript in Arabic is here.

Highlights of the largely retrospective interview follow and serve as a reasonable guide for non-specialists to developments in the sector.

The government has formulated a comprehensive strategy to overcome the energy crisis, Ismail says, including:

Encouraging IOCs to re-start their exploration programs. Since November 2013, the government signed a record 56 exploration agreements with foreign oil and gas companies. This figure is indicative of the foreign companies’ growing confidence in the Egyptian economy, the minister says. (And, we’d add, to the Sisi administration having prioritized payment of back dues and improving pricing.)
Increasing Egyptian imports of LNG. In April 2015, the first FSRU to ever dock in Egypt arrived at Ain El Sokhna port and was subsequently connected to the national grid. Additionally, the Egyptian Natural Gas Holding Company (EGAS) has signed agreements for the importation of 90 shipments of LNG.

Accelerating the development of existing gas fields. In recent months, the minister said, we have commenced production at several gas fields including block 9A of the West Delta concession.

Increasing domestic production, from pumping oil to refined product. We have plans to recommence activity at the Hilal Bahary field, producing between 3,000-5,000 bopd. The CAPEX for the project is USD 234 mn. In parallel, we are undertaking USD 9 bn worth of projects pertaining to the refining and transportation of petroleum, the most important of which is the USD 3.7 bn Egyptian Refining Company in Mostorod (the plant, in the Greater Cairo Area, is a project of Qalaa Holdings and will cut by more than half Egypt’s current diesel imports).

Mining: The ministry has also taken steps to attract investment to the country’s mining sector: On 9 December 2014, the Mahlab government passed the new Mineral Resources Law, following its approval by President Sisi. The law brings Egyptian legislation into step with global industry norms, thereby maximizing benefits to the national economy. Under the new law, foreign miners will be required to pay the government a 5% royalty. The government is currently in the process of drafting the executive regulations of the law; they should be issued shortly. Ismail estimates that the passing of the Mineral Resources Law will generate upwards of EGP 3 bn in revenues annually for the state’s coffers.

Petrochemicals: Ismail says the government has a number of petrochemicals projects in the pipeline, requiring investments of approximately USD 10 bn. Among these projects is the expansion of MOPCO’s urea and ammonia production facilities. Also in the works is a plan to establish a USD 227 mn biofuel plant. The biofuel plant will rely primarily on rice husks as feedstock and will produce 50,000 tons of ethanol annually.

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A MESSAGE FROM PHAROS HOLDING

CBE Maintains Neutrality on Policy Rates, In-line with Market Expectations

During the Monetary Policy Committee’s mid-2015 meeting last Thursday, the Central Bank of Egypt announced its decision to leave its policy rates unchanged, as a result also maintaining the EGP-USD exchange rate that was set last January, contrary to Pharos Research’s initial expectations.

Arguments advocating for stable policy rates are based on the upside risks to inflation due to the expected increase in fuel prices. However, with the government’s recent announcement delaying subsidy cuts owing to lower crude prices, as well as lower international food prices and concerns over global economic recovery, might be indicators of an inconsistent policy on the CBE’s part. To find out more click here.
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EGYPT IN THE NEWS

The Washington Post editorial board has published its twice-monthly editorial on Egypt, titled: A strongman’s empty promise. It seems that the Washington Post is one of the few organizations that was willing to meet with the visiting Ikhwani delegation in DC and listen to their claptrap. The article’s logic is flimsy, especially when it treads into the following well-worn path: “There are many reasons for the deteriorating security, including the Egyptian army’s poor tactics and morale. But the most conspicuous failure has been the indiscriminate repression applied by the Sissi regime. Not just armed jihadists have been targeted, but also secular liberal activists, human rights organizations, critical journalists and anyone else who offends the generals. Peaceful public protests are effectively banned, and scores of people are imprisoned for joining them.” The Post then uncritically reproduces the Ikhwan’s stated renunciation of violence by its sidelined older leadership as expressed by Amr Darrag in the piece, making only the most oblique mention of “slippage” following the Ikhwan’s recent and well-documented embrace of “the revolutionary option with all its means and mechanisms.“

Sam Kimball writing for Glenn Greenwald’s The Intercept points out: “Construction has yet to begin on the new church in El Aour [the town of origin for the majority of the Christian Egyptians who were beheaded in Libya by Daesh] which will be funded by the Egyptian state, though the budget and presidential permission are ready, according to Magar Issa, a local clergyman. Residents are still waiting for a go-ahead from El Minya’s governor.” (Read: The Martyr’s Church)

Egyptian American columnist Mona Eltahawy writes in a NY Times op-ed about the recent wave of disappearances of youth, linking between them and her own previous detention and slamming Egypt’s Western allies for their silence on human right infringements in favor of business deals.

IN FOCUS: “27 kilograms of raw meat seized at Pearson airport“ is the headline that every Egyptian reads and silently fills in the unwritten subtitle: “Egyptian involved.” From the report: “A traveller arriving from Egypt was found at Toronto Pearson International Airport with luggage filled with 27 kilograms of undeclared, raw meat last week. On June 9, Canada Border Services Agency officers found the partly frozen beef cuts, a whole goose and some smaller avian birds inside luggage.”

First, whoever did this needs to be returned to Egypt immediately to confess and perform a walk of atonement while being pelted with raw meat. Alternately: a public education campaign to get people to stop such infractions might help. Egyptians’ penchant for checking into luggage claim items including — but not limited to — enormous bundles of blankets, bags of rice, and smuggled foodstuffs has to stop. It is no less than every Egyptian’s duty, in times of international scrutiny such as these.

Note that Canada’s CBC refers to “smaller avian birds” aka HAMAM. They seem to have gone to great lengths to not write the word “pigeon.” Take a moment to reflect on this. Possible explanations include: the writer could simply not believe it and thought it must have been a mistake, or perhaps they were being sensitive to readers’ sensibilities. After being discovered by a dog named Scout, the raw meat was confiscated and destroyed. And because this happened in Canada, the person was released following a stern discussion.

WORTH READING

The market for coding bootcamps — training centers which aim to give its graduates the essential skill set they need to enter the software development profession within 3 months’ time — has grown by 138% in the US and Canada, according to a recently published survey, and is expected to grow by 2.4x next year. According to Bloomberg, typical courses last 3 months, for an average total tuition of USD 17k, with about three-fourths of their graduates placed in coding jobs within the first 3 months of graduating. On the other end of the spectrum are those who argue that to achieve true mastery of the field, (or any other) takes about ten years.

With all the renewed interest in coding (an interest which has never really gone away, and has been effectively incorporated in national curriculums in the UK and Israel), almost everyone is talking about Paul Ford’s piece for Bloomberg Businessweek — a 38k word article that takes up the whole edition to explain, simply: What is Code? (And just as importantly: Should you learn to code?) “The coder-turned-venture-capitalist-turned-Twitter-public-intellectual Marc Andreessen wrote that software is eating the world. If that’s true, you should at least know why it’s so hungry.” Bloomberg will take your picture with your webcam to give you a certificate for completing a 38,000 word article.

Don’t have the time and need the TL;DR version? Bloomberg has this short video summing the main points, (although it’s on that awful proprietary video player of theirs): (Watch, running time: 3 minutes)

WORTH WATCHING

We don’t usually make mention of the internet’s unending wave of cat and dog videos and images, but 2006’s video Birds by Vitalic elevates the medium to something one doesn’t usually come across. Birds features dogs floating in slow motion through lasers (were some of them tossed up there?) set to dance music. The video is basically a very high-end commercial or music video about dogs. (Watch, running time: 2:58)

DIPLOMACY

President El Sisi formally invites Pope Francis to visit Egypt: Following his informal invitation to the Pope in November 2014, Egypt’s ambassador to the Vatican has extended to the Pope the Presidency’s official invitation, Ahram Online reports.

Egypt accused of refusing overflight of plane carrying Houthi representatives to peace talks in Geneva: U.N. Secretary-General Ban Ki-moon started Yemen peace talks in Geneva on Monday, Reuters reports, with accusations being leveled at Egypt by the Houthis for refusing to allow a plane from Eritrea carrying a Houthi delegation to overflight from Egypt. “Seif al-Washli, an adviser to the Houthi team, told Reuters in Geneva: “It is clear this was a result of Saudi pressure on Egypt and Sudan to block the delegation and humiliate them.” Egyptian civil aviation officials denied Cairo had any objections to the Houthi delegation using its airspace.” (Read)

Israel Seeks Gulf Arabs’ Help to Revive Peace Talks, Shalom Says: “Israel is trying to use contacts with Egypt, Jordan, Qatar and other Gulf countries to revive peace talks, said [Deputy Prime Minister and Interior Minister Silvan] Shalom …” (Read in Bloomberg)

Egypt will keep the Rafah border crossing open for an extra two days, Reuters reported. The border crossing was opening on Saturday for three days initially.

ENERGY

UFG, SEGAS drop arbitration charges against Egypt
Al Borsa | 14 June 2015
Union Fenosa Gas (UFG) and SEGAS have dropped their arbitration charges filed against Egypt in January 2014, Al Borsa reported. The companies had filed a complaint after natural gas supplies to their gas liquefaction plant in Damietta had halted since July 2012. Khaled Abdel Badie, the Chairman of EGAS, said a settlement will be reached with UFG and SEGAS without the need to resort to arbitration. The companies were contracted to receive shipments of 750 mcf of natural gas per day. The Oil Ministry’s production plan shows no indication about it being able to channel gas to the Damietta plant until 2018, Al Borsa says. (Read in Arabic)

Adding mazut fuel oil to the smart card system 90% complete
Amwal Al Ghad | 15 June 2015
Adding mazut fuel oil to the smart card system is 90% complete, an EGPC executive told Amwal Al Ghad. He expects a final decision adding to the card system to be made soon and implemented directly. Fishing boats are also being issued cards, the executive said. (Read in Arabic)

ECHEM says technical, financial studies for propylene project to be completed in October
Al Borsa | 15 June 2015
The Egyptian Petrochemicals Holding Company (ECHEM) said the technical and financial studies for the propylene project will be completed by October. The USD 2 bn project, announced as part of the investment opportunities at the EEDC, will be built on land owned by ECHEM in Alexandria. Kuwait’s Boubyan Petrochemicals signed a MoU for the project last February and the project is set to begin production in 2020. (Read in Arabic)

EGPC will be closely monitoring fuel and diesel distribution centers
Al Mal | 15 June 2015
The EGPC has announced that it has established an operations center to closely monitor diesel and fuel distribution centers and lines across all governorates and communities in order to better meet spikes in demand wherever they may arise. According to Mohamed Ogeiza, head of the Central Administration for Marketing and Distribution at the Ministry of Petroleum, the ministry will also maintain a presence on the field to maximize its monitoring efforts. (Read in Arabic)

Suez Oil Processing Company nears completion of butane gas processing plant
Al Mal | 15 June 2015
The Suez Oil Processing Company has accelerated its development of a butane gas processing facility. Upon completing the project, the company aims to raise its production of petroleum derivatives to 190,000 to 199,000 tons annually, all of which will be sold to the domestic market. (Read in Arabic)

BASIC MATERIALS & COMMODITIES

Steel companies reduce prices by up to EGP 300 per ton
Al Borsa | 15 June 2015
Seven steel companies announced reduced June prices ranging between EGP 100 per ton and EGP 300 per ton to EGP 4,500-4,750. The Minister of Supply and Internal Trade, Khaled Hanafy, said that ministry inspectors are tasked with ensuring manufacturers and suppliers adhere to announced prices. (Read in Arabic)

Berkash silo to open in January
Al Shorouk | 15 June 2015
The Egyptian Holding Company for Silos and Storage (EHCSS) announced the Berkash grain silo will open in January of next year with a capacity of 60 thousand tons and an estimated value of EGP 100 mn. Construction began in December 2014 by the Arab Contractors and
is funded by the UAE, according to Nashaat El Katan, advisor to the Chairman of EHCSS. (Read in Arabic)

MANUFACTURING

Gov’t adviser refutes rumors of delays in opening 1,000 factories
Al Borsa | 15 June 2015
Abla Abdel Latif, head of the Specialist Council for Economic Development refuted rumors in the local press that there will be delays in launching 1,000 new factories in New Cairo by month’s end, adding that 150 factories have already begun operations, and construction of 908 factories has been completed, with 50% of them being operational-ready. The project is expected to employ over 250,000 workers upon completion. (Read in Arabic)

HEALTH & EDUCATION

HoldiPharma negotiates EGP 500 mn investment with three foreign companies
Al Borsa | 15 June 2015
HoldiPharma is in talks with specialized oncology pharmaceutical manufacturers from China, Switzerland and Austria over establishing a manufacturing plant in Egypt, said Abdel Abdel Halim, president of HoldiPharma. (Read in Arabic)

78 new medical units established with Emirati funding
Al Borsa | 15 June 2015
Minister of State for Local Development Adel Labib announced that the 78 new state-of-the-art and fully equipped medical units have been established at medical centers across 23 governorates. These units, which cost EGP 250 mn to build, were funded by the UAE. (Read in Arabic)

REAL ESTATE & HOUSING

Ministry of Housing signs three partnership deals worth EGP 100 bn
Al Mal | 15 June 2015
The Ministry of Housing have initiated three contracts worth over EGP 100 bn from the original 14 partnership projects it had raised at the Egypt Economic Development Conference (EEDC). Assistant Minister of Housing, Khalid Abbas, said the state’s return on the investment ranges from 30%-35% on the 10 year projects.

Minister of Housing confirms EGP 5 bn to complete utilities for new capital
Statement from the Office of the President | 15 June 2015
The readout on the meeting Sunday between President Abdel Fattah El Sisi, Housing Minister Moustafa Madbouly and members of the Armed Forces Engineering Authority notes that work on road design and infrastructure, including the Mohammed Bin Zayed road from New Cairo to the new capital, has already begun. The EGP 5 bn has been allocated from the 2015-2016 budget. In addition, a water mains lain, with a capacity of 10,000 cubic meters and meets the needs of 50,000 citizens, is to be extended from the 10th of Ramadan City to the new capital.

Construction of three New Cairo Malls 40% complete: Rafideen for Real Estate Development and Project Management
Al Borsa | 15 June 2015
Rafideen for Real Estate Development and Project Management has completed 40% of its work on the construction of three malls in New Cairo. To date, the company has spent a total of EGP 400 mn on the construction of the malls. That said, the company predicts that completion of the malls will cost 15% more than additionally estimated, due to a rise in the prices of construction materials. The company expects to complete its work on the malls by 2017

TOURISM

Tourist arrivals up 17.7% in April -ETA
WAM | 15 June 2015
Tourist arrivals in Egypt have grown by 17.7% y-o-y, the Egyptian Tourism Authority (ETA) announced. The numbers of Arab tourist arrivals have increased significantly with Saudi Arabian arrivals growing by 57.3% y-o-y in April and Emiratis’ by 49.8% y-o-y. The trend continues as the Tourism Ministry moves on with its “Masr Qariba” campaign, which is aimed directly at attracting Arab tourists. (Read)

Indian Ambassador calls for direct flights to and from New Delhi
Al Mal | 15 June 2015
The Indian Ambassador to Egypt, Sanjay Bhattacharyya, met with Tourism Minister Khaled Ramy on Monday, where their discussions were focused on bolstering tourism between the two countries. The ambassador thanked the minister for his efforts in helping organize the India on the Nile cultural festival which was a success, with both praising the roles of cultural festivals in strengthening tourism and bilateral trade. Amb. Bhattacharyya stated that he looked forward to EgyptAir launching four direct flights per week to Mumbai and called for that to be extended to New Delhi. (Read in Arabic)

TELECOMS & ICT

Mobinil launches modern packer core network with Ericsson
Daily News Egypt | 14 June 2015
Mobinil announced the launching of a modern packet core network in cooperation with Ericsson in a “bid to offer cost-effective and reliable broadband services to its customers.” The network is part of a of a five-year framework agreement catering to increasing demand for mobile-broadband services. Mobinil believes that the move pre-empts an anticipated demand surge from a young and growing customer base. (Read)

ICT Ministry to issue new guidelines for customer service for telecoms and internet companies
Al Borsa | 15 June 2015
The National Telecoms Regulatory Authority (NRTA) will issue new guidelines for telecom and broadband companies concerning customer services. These new guidelines will set a new standard for customer service response times, expediency of technical solutions, quality of interaction with the customer, efficiency of service and customer complaints. The NRTA will also establish a quarterly periodical review of ICT companies’ customer services. (Read in Arabic)

BANKING & FINANCE

Bank Audi aims to double Egypt assets and earnings by 2017
Reuters | 15 June 2015
Lebanon’s Bank Audi aims to double its assets and earning by 2017, Freddie Baz, the group’s strategy director told Reuters. The bank is banking on a continued revival of Egypt’s economy as Egypt was Bank Audi’s most profitable overseas operation with 1Q2015 earnings growing by 52% y-o-y to USD 22 mn. “Our strategy is based exclusively on organic growth but if the right acquisition comes along that adds value to the bank we will analyse it,” Baz said with Reuters noting that Bank Audi is “rebalancing in Egypt, diversifying away from a reliance on corporate banking to tap more profits from its commercial, retail and SME businesses.” Bank Audi plans to add 20 new branches over the next three years. (Read)

CIB launches cardless money transfer via ATM
Al-Mal | 15 June 2015
The move makes the nation’s leading private-sector bank the fourth institution nationwide to enable this feature, following NBE, United Bank of Egypt, and Banque Misr. The instant transfers have a daily cap of EGP 2,000 and a monthly cap of EGP 5,000. (Read in Arabic)

Mobile commerce could expand in Egypt
Al-Mal | 15 June 2015
CIB, AAIB, Bank of Alexandria and Bank Audi are in discussions with MasterCard to allow cardholders to pay using their smartphones, says MasterCard Regional Manager Magdy Hassan. Hassan cites precedents including the National Bank of Egypt’s Phone Cash payments service (in partnership with Fawry) as well as mobile money products from Vodafone and Mobinil. (Read in Arabic)

After turning to profitability, AIB is not for sale -Chairman
Daily News Egypt | 14 June 2015
The Arab Investment Bank (AIB) not for sale now, Chairman Hani Seif El Nasr said in an interview with Daily News Egypt. The bank, which is jointly owned between Egypt, Libya, and Syria, is “no longer a burden on the government” after it turned to profitability, Seif El Nasr added. AIB has plans to almost double its branch network to 35 from 18 currently, pending CBE approval. The bank will also launch an Islamic leasing company with a capital of EGP 100 mn. (Read in Arabic)

Misr Life Insurance to reach EGP 25 bn investments by June 2019
Amwal Al Ghad | 15 June 2015
Managing Director of Misr Life Insurance, Mohamed Ghazi, said his company’s five year plan is to reach an EGP 25.24 bn investment target by the end of FY 2018/19, versus an EGP 17.7 bn target by June 2015. He added that Misr Life Insurance plans to expand its limited medical insurance capacity, as well as reaching an agreement with Egypt Post allowing the promotion of microinsurance throughout their branches. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

Abandoning cotton subsidies will cost the state USD 2 bn, warn industry insiders
Al-Iqtisadi | 15 June 2015
As the government moves to cut subsidies on cotton as part of its rationalization policy, a number of industry insiders have warned against it. The head of the Cotton Exporters Association, Mofrah Al Beltagy, warned that abandoning subsidizing cotton will cost the state USD 2 bn annually — the price of cotton imports to sustain the textiles industry. Al Beltagy counters that it has cost the state only EGP 3 bn since 1994 to subsidize cotton growers. Wael Almaa, who heads the Egyptian Cotton Association, had stated to Youm7 that Egyptian cotton exports were dwindling with its market share dropping internationally by 3% due to a drop in demand, necessitating the need for government protection as the ginning and textiles sector directly employs 3 mn people. CAPMAS had reported a 21% year on year drop in exports in 1Q15. These are all factors which led to the signing of cooperation protocols between ECA and the Egyptian Junior Business Association to help strengthen cotton exports. The story comes in the context of today’s hearing in the lawsuit against the government’s move to eliminate cotton subsidies. (Read in Arabic)

LAW

Ministry of Manpower holds ministerial committee on new Immigration Law
Al Borsa | 15 June 2015
Minister of Manpower and Immigration, Nahed Ashry, chaired The High Committee on Immigration on Monday to discuss the new draft of the new immigration law. The committee included representatives of 18 related ministries. The committee also discusses establishing policies which would provide aid and assistance, whether economic or otherwise to Egyptians living and working abroad, in addition to setting up a fund to care for deported Egyptians who have been cut off from their livelihood abroad. The committee also discussed preparations for a conference for expatriate Egyptians. (Read in Arabic)

ON YOUR WAY OUT

Minister of Transportation Hany Dahy rode the first air-conditioned metro on the Marg-Helwan line. He added that the air conditioned metro was one from a total of twenty the ministry had contracted from South Korea as part of a plan to upgrade the first line.

A bank account with the number 682015 will be opened to receive donations to fund to the New Suez Canal’s official opening ceremony, the head of the Suez Canal Authority Mohab Mamish said. The bank account will be managed according to CBE regulations. Drinks are on us. Who’s bringing balloons?

Four electricity towers in Giza were brought down by explosives in what authorities believe were an attack by Islamist terrorists yesterday, Egypt Independent reports.

The African Union (AU) relies predominantly on non-member state funding. When CNBC Africa asked its community for its thoughts on the issue, many expressed that the AU should be self-funding. Earlier this year, “a new funding model was proposed whereby the richest member countries, including South Africa, Nigeria, Algeria, and Egypt – would pay more to allow the organisation to become independent of non-member funding.”

The Social Fund for Development completed 2574 small and micro business projects in Qalyubia, said Governor of Qalyubia Mohamed Abdel Zaher. The 2,574 projects are worth EGP 77 mn and generated 4,566 job opportunities.

Arab Contractors will deliver the Cairo-Alex desert road project in June, according to Chairman Mohsen Salah. The project’s total cost was EGP 800 mn.

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